Expedia Inc. (EXPE): Today's Featured Leisure Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Expedia ( EXPE) pushed the Leisure industry higher today making it today's featured leisure winner. The industry as a whole closed the day down 0.4%. By the end of trading, Expedia rose 65 cents (1%) to $63.76 on average volume. Throughout the day, 2.9 million shares of Expedia exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in a price between $62.69-$63.90 after having opened the day at $63.27 as compared to the previous trading day's close of $63.11. Other companies within the Leisure industry that increased today were: Orbitz Worldwide ( OWW), up 14%, Jack In The Box ( JACK), up 5.1%, Nevada Gold & Casinos ( UWN), up 4.5%, and Monarch Casino & Resort ( MCRI), up 3.8%.
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Expedia, Inc., together with its subsidiaries, operates as an online travel company in the United States and internationally. Expedia has a market cap of $7.9 billion and is part of the services sector. The company has a P/E ratio of 29.8, above the S&P 500 P/E ratio of 17.7. Shares are up 4.9% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate Expedia a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Expedia as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Marriott Vacations Worldwide ( VAC), down 11.7%, Asia Entertainment & Resources ( AERL), down 5.2%, Chanticleer Holdings ( HOTR), down 5%, and Kona Grill ( KONA), down 4.7%, were all laggards within the leisure industry with Starwood Hotels & Resorts Worldwide ( HOT) being today's leisure industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).

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